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Warmoth Gibbs
ECO 2023 Module 4
Question | Answer |
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Market | a group of buyers and sellers of a particular good or service |
Competitive Market | a market in which there are many buyers and many sellers so that each has a negligible impact on market price |
Quantity Demanded | the amount of a good that buyers are willing and ABLE to purchase |
Law of Demand | the claim that, other things equal, the quantity demanded of a good falls when the price of the good rises |
Demand Schedule | a table that showsthe relationship between the price of a good and the quantity demanded |
Demand Curve | a graph of the relationship between the price of a good and the quantity demanded |
Normal Good | a good for which, other things equal, and increase in income leads to an increase in demand |
Inferior Good | a good for which, other things equal, an increase in income leads to a decrease in demand |
Substitutes | two goods for which an increase in the price of one leads to an increase in the demand for the other |
Complements | two goods for which an increase in the price of one leads to a decrease in the demand for the other |
Quantity Supplied | the amount of a good that sellers are willing and ABLE to sell |
Law of Supply | the claim that, other things equal, the quantity supplied of a good rises when the price of a good rises |
Supply Schedule | a table that shows the relationship between the price of a good and the quantity supplied |
Supply Curve | a graph of relationship between the price of a good and the quantity supplied |
Equilibrium | a situation in which the market price has reached the level at which quantity supplied equals quantity demanded |
Equilibrium Price | the price that balances quantity supplied and quantity demanded |
Equilibrium Quantity | the quantity supplied and the quantity demanded at the equlibrium price |
Surplus | a situation in which quantity supplied in greater than quantity demanded |
Shortage | a situation in whihc quantity demanded is greater than quantity supplied |
Law of Supply and Demand | the claim that the price of any good adjusts to bring the quantity supplied and the quantity demanded for that good into balance |